Fortis Healthcare eyes 26% stake in renewable energy companies

Fortis Healthcare Ltd is looking at acquiring a stake in a renewable energy company through its subsidiary Fortis Malar Hospital for captive purpose.

According to the plan, Fortis Malar would invest around Rs 20 lakh in equities of a wind power company to acquire at least 26 per cent stake, said a company spokesperson. This is the first time the healthcare company is moving to acquire stake in a power venture.

The move comes as part of the Chennai-based Fortis Malar Hospital’s plan to source green power from a renewable energy company, an environment-friendly move which will also help the hospital cut its expenses.

“To start with, Fortis is implementing this strategy in one of its facilities (Fortis Malar). In due course of time, as the healthcare centre expands, we have plans to go with the same arrangement for our other facilities,” the spokesperson said. “This way, Fortis will enhance its brand image as a green establishment without compromising on its economic viability.”

While the present average cost per unit from conventional sources of power is around Rs 7.50, sourcing green power will help the Fortis Malar hospital save around Rs 1.30 per unit, according to the company.

Company officials said Fortis Malar had decided to buy into a power firm because it was mandatory in Tamil Nadu that any consumer who wants to purchase power under a group captive arrangement should have some take in the power generator.

According to the Tamil Nadu Electricity Act, 2003, and Tamil Nadu Electricity Rules, 2005, group captive consumers together should own 26 per cent stake in the generating company.

“So the percentage of shareholding will be in proportion to the contracted annual quantum of wind power. We have planned to contract with one of the leading wind energy producers,” the spokesperson said.

The official, however, refused to name the company.

The hospital has proposed amendments to some clauses in its memorandum and articles of association to either to acquire 26 per cent or above, or invest in other forms in a wind energy company as part of its green initiative.

It has issued a notice of postal ballot, seeking shareholders’ approval for the amendment proposal.

The proposal is “to enable the company to make investment in legal entities including but not limited to the entities that provides wind power energy either by way of acquisition of shares or making loan or giving guarantee or providing security and to meet the future requirements, if any,” the company notice said.